A train of thoughts and writings on development, technology and the economy focusing on the socio-techno-economic-cultural surge of developing economies to regain and partake in leadership of the world. Written by George Easaw. (This is purely an academic site, no commercial use is allowed. Photography rights lie with the respective organisations). Mention credits as needed.

Tuesday, February 26, 2013

Are Americans still ready to pay more for Apple than other Chinese products ..?

For years Apple has beguiled the American public bringing issues of prestige, status, pride, nationalism etc to the fore in selling Apple phones to its people saying it is an American product. Especially when manufacturing in US was at a low ebb, Apple helped to bring back patriotism and a false sense of pride that it is not that dark after all ..

But US public has now got to realise that they have been enmasse taken for a ride by Apple and Apple justifiably is having the last laugh, laughing all the way to the Bank.

US public now have come to realise that Apple is as much Chinese as Lenovo, or Huawei or Haier .. With Chinese quality improving and expressing itself impeccably in iphones and ipads, there is no looking back or looking down on brand China.

In my interactions with a person on branding of iphones and how Americans still believe it segregates them from the less advanced people of the world just based on the status and prestige symbol of carrying an apple product, though functionally it is still equal or less than some of the latest and best smart phones in the market, the brand image of Apple is diminishing as the people have come to realise that it is 'also' a Chinese product.

The brand image of a Rolls Royce or a Mercedes still has some image in the eyes of the people, but not the Apple brand, basically because these cars still continue to be handcrafted or manufactured in their country of origin and not in any low cost manufacturing site with a sole intention to boost profits. (It is still not clear whether Americans do believe that they have lost the edge and do not have the manufacturing prowess to make any high-tech product, quality wise or cost wise still in US..)

This short sighted approach of Apple is going to do them
damage in the long run.. It does not matter whether one has $ or $1000
or $120 billion as liquid cash. If one has a loss making organisation
like Apple in the next few years, the money is going to be a great
botheration. From the high pedestal of innovative thinking and high branding, it is going to have fall like a kite, because right from Steve Jobs, their focus was on short term profits and returns.

For a person who is unable to gauge the changing equations and scenario in the world, this writing may look a bit upsetting. But the truth can never be hidden ..